Nearly half, or 43%, of business owners in the UK were not clear in making redundancies in line with the law, according to a survey from BrightHR, an HR software and employment law advice service, revealed today.

With recent data from the CIPD (Chartered Institute of Personnel and Development) and Adecco Group showing that a third of UK organisations are expected to cut jobs in the next quarter of 2020, the survey results are a big concern, according to BrightHR, as even the smallest mistake could result in employers facing employment tribunals and hefty legal penalties.

The survey of 2,000 small business owners also found that 51% of employers were not clear on the redundancy process during or after furlough, with lots of confusion surrounding whether redundancy pay is based on employees’ normal wages or their furlough rate of pay.

Alan Price, CEO of BrightHR and employment law expert, said, “With the UK government’s Job Retention Scheme winding down and many businesses having to let staff go to cope with changing levels of demand, redundancies are currently an unfortunate necessity for many companies. But you need to explore every other option first.”

Price continued, “Because if the worst happens and an employee takes you to a tribunal, a judge will expect to see a firm business case for why you had no choice but to make a role redundant. The tribunal will also want to see that you’ve followed the correct redundancy process. Failure to do so could lead to you making a big pay out to your former employee. None of this is easy. Contract changes and redundancies are among the most complicated areas of employment law. Therefore, it’s essential that employers either understand the redundancy process or they have the relevant tools and people to assist them with making the right decisions in line with the law.”

 

Original article ‘UK – Nearly half of business owners not confident in making redundancies in line with the law‘ Written and Published by Staffing Industry Analysts

 

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